NYSE: DVNdevonenergy.com

Advanced Artificial Intelligence Summit – Sept. 2016

Devon Energy

E&P Advanced Analytics

Kathy Ball

Artificial Intelligence Journey:Revolutionizing the Energy Industry

Deep Learning

Cognitive Analytics

Machine Learning

Real-Time Intelligent Algorithms

Complex Event Processing

Simple Machine Learning

(ANI/AGI) Industrial IoT

(ANI) Intelligent Digital Oil Fields

(AGI/ASI) Supercomputing

Challenges in the Digital Oil Field

Artificial Intelligence:

Real Time Machine Learning - Crawl

Artificial Intelligence: Predicting Analyst OpinionsText Mining NLP

Business Problem: Devon is exploring ways to utilize text mining to add additional value to structured data. Analyzed Analyst opinion to determine if possible to predict Analyst opinion.

Challenge: Competitors with earnings transcripts over 20 pages long with data going back to 2013. Big data issues with business term groupings not yet defined.

Analytical Solution: Created a model to predict analyst opinion with good accuracy for the time period analyzed. Expanding over a larger time horizon and include structured financial predictors such as NPV, EBITDA, etc. May include macroeconomic indicators such as commodity price, interest rates. Will also expand use of web crawlers and web bots.

Artificial IntelligenceMachine Learning – Predictive Analytics

Business Problem: Determine an

automated Drilling Risk Assessment for a

selected well and the associated NPT based

on geospatial location and well section.

Challenge: NPT calculations have changed

over time and were consistent across well

section

Analytical Solution: Develop real-time

analytical solution to assess drilling risk

based on proximity of surrounding wells

and by location of well. Create statistical

percent chance of NPT based on section of

well.

Artificial IntelligenceMachine Learning – Real-Time Predictive Analytics

Deep Learning:

Supervised Learning Video Processing- Walk

Production:Deep Learning – Video Production Log Analysis

Business Problem: Devon is exploring ways to use technology to improve video analysis for oil, gas, and water detection within a well.

Challenge: Production log videos are fairly new and can be hours in duration. We are looking at ways to utilize technology to speed time to discovery and actionable insights.

Analytical Solution: Requires a frame by frame breakdown with pattern recognition technologies to identify changes in text as well as changes in input. In the process of defining how to detect water, oil, and gas.

Deep Learning:

Unsupervised Learning (Autoencoding) - Run

Geosciences: SPE International Publication Derived Seismic Attributes in Reservoir Characterization

Anadarko: Advanced Artificial IntelligenceDeep Learning – Advanced Seismic Analysis

Business Problem: Devon is exploring ways to train computers to perform human-like tasks such as finding patterns via many layers of processing. Task is to find patterns difficult to track for humans to identify and then automating for hydrocarbon reservoir discovery.

Challenge: Neural networks need to train a five-layer auto-encoder with multiple hidden units per layer and then use stacked denoising autoencoders to diminish noise and/or corruption.

Analytical Solution: Early results are starting to show some positive results around clustering and groupings that could be of use in further seismic interpretations.

Next Step:

Deep Learning to Cognitive Computing

Next Steps

• Continue the journey towards better AGI for immediate business value creation

• Teach Business Owners how to ask bigger questions

– Beyond Hadoop and In-Memory/In-Database

• Demystify Artificial Intelligence for End-Users

• Have fun and challenge thoughts on technology OT/IT/OI

NYSE: DVN www.devonenergy.com page 14

The best is yet to come!

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Devon Advanced Analytics